Cryptocurrency trader 0xsmac on Tuesday challenged the prevailing notion that the crypto market is nearing the middle or end of its current cycle, pointing instead to a variety of data points to claim that it is still in its early stages.
What Happened: “The perception of the cycle being out of order is skewing how people view the market,” writes 0xsmac in a Substack article, referencing the frustration some investors felt by missing out on early gains in assets like Solana. He believes this psychological factor is warping current sentiment.
The recent approval of a Bitcoin ETF is a significant development, but 0xsmac emphasizes that access for retail investors through major investment firms, such as wirehouses, hasn’t materialized yet.
This vast pool of potential capital remains on the sidelines.
0SMAC acknowledges institutional inflows, but states they haven’t reached their full potential yet. He points to 13F filings as evidence that advisors are gradually incorporating Bitcoin BTC/USD ETFs into client portfolios.
“Massive new pools of institutional capital now have legitimate access to this asset class,” he explains, suggesting a profound shift in market structure akin to “tectonic plates” in their slow but impactful movement.
Despite the influx of institutional money, 0xSmac is keen to point out the continuing relevance of retail investors and newer platforms.
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He mentions the recent halving event which reduced Bitcoin supply, and the divergence in Google trend data and Coinbase app store rankings from past bull markets.
These indicators suggest a more subdued level of retail frenzy, which could mean that the market is not as overheated as previous cycles.
The crypto trader is also not shy about calling out the unpredictability and new developments in the market, particularly with the advent of memecoins and the broader spread of capital across different cryptocurrencies.
“This isn't supposed to happen yet,” he reflects on the unexpected market movements, emphasizing the uncharted territory that the market is currently navigating.
Looking towards the future, 0xSmac remains “turbo optimistic,” estimating that we are about 1/3 of the way through the current cycle.
His narrative suggests that while the market has its complexities, the underlying trends indicate a robust appetite for digital assets, pointing towards a cycle that may still have considerable room to grow.
What’s Next: As the market continues to develop, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 will provide a pivotal platform for industry leaders and investors to discuss these trends and their implications for the future of cryptocurrencies.
This gathering is timely, offering a space for critical insights and strategic discussions that align with the ongoing evolution of the market as outlined by influential traders like 0xSmac.
Read Next: Crypto ‘An Outsized Piece Of The Scams And Problems’ In Markets: Gary Gensler
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